As more Thai people shift online to conduct their shopping – 14 million by 2021 – there is little doubt that the country will reach its projected ecommerce potential of over $11 billion.

The government’s roadmap for Thailand 4.0 is another boost for the digital habitat as investors often see bureaucracy in the region as a hinder to business.

So now the path is smooth to promote growth and money is coming in from the Chinese, how has the ecommerce landscape in Thailand changed over the last year?

1. Strong players emerge in fashion ecommerce

After acquiring Zalora in Thailand and Vietnam last year, Central Group finally shed the old image to relaunch as LOOKSI earlier in June this year in attempts to revive the brand.

The change wasn’t only in the name, fashion labels housed by Zalora were cut by half to about 1,000 brands. The company also moved away from discounted products and began offering seasonal products instead.

But it was Thai-bred fashion startup Pomelo that created buzz after raising a $19 million Series B led by Chinese retail giant JD.com and participation from ally, Central Group.

Pomelo currently operates local ecommerce websites in Thailand and Indonesia but with new funds, the company is eyeing further expansion in Southeast Asia and even Europe. It’s also a firm believer in a multi-channel retail strategy, launching a offline store in Bangkok’s fashion hub Siam to offer click & collect

2. Global fashion and beauty brands get local

This year, more notable global brands launched local ecommerce websites to penetrate the Thai market.

Global fashion retailer Zara officially unveiled its ecommerce website and mobile application earlier this year, and integrates online and offline shopping by providing a pick-up service and return in-store for online purchases.

Thailand ECOMScape in 2017 (right) see more beauty brands launch their own ecommerce website than in 2016 (left).

Global beauty brands such as Lancome, Biotherm, and YSL have also launched local ecommerce websites in hopes of capturing the growing online segment.

3. The long-standing battle for logistics dominance continues

To talk about the rise of online shopping in the country isn’t complete without mentioning the vital and often forgotten pieces of the ecommerce value chain such as logistics.

The red ocean sector still draws new players despite the handful of names already dominating the space i.e. lalamove, Kerry Express, etc. One of the new additions includes Singapore-headquartered online food and grocery on-demand provider honestbee.

honestbee launched its logistics service called Goodship earlier this year to capture the growing demand, focusing on last-mile and same-day delivery services.

General Manager of honestbee Thailand Bounthay Khammanivong at the Goodship launch.

Singapore-based NinjaVan also entered the Thai market in August and hopes to raise a $60 million Series C round. Who can bleed the longest?

4. JD.com gets its grips on Thailand

Chinese companies have certainly made some aggressive moves in Southeast Asia, and JD.com has chosen to make waves in Thailand this year.

The company announced a $500 million joint-venture with Thai conglomerate Central Group earlier this year that will be spent on ecommerce and fintech development, as well as promising the latest technologies to woo the country as its hub for Southeast Asia.

The ecommerce lovechild of the joint-venture, called JD Central, is expected to launch by April next year.

Thailand is JD’s second major investment outside of China after plans to win Indonesia hit a roadblock. The company lost the bid for leading C2C player Tokopedia to Alibaba and its own ecommerce site JD.id has yet to push top five in the country in terms of web traffic.

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